Connecticut 2020 Regular Session

Connecticut Senate Bill SB00139 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 1453 1 of 15
4	4
5	5	General Assembly Raised Bill No. 139
6	6	February Session, 2020
7	7	LCO No. 1453
8	8
9	9
10	10	Referred to Committee on GENERAL LAW
11	11
12	12
13	13	Introduced by:
14	14	(GL)
15	15
16	16
17	17
18	18
19	19	AN ACT CONCERNING CH ANGES TO CONSUMER PR OTECTION
20	20	STATUTES.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 21a-219 of the general statutes is repealed and the 1
25	25	following is substituted in lieu thereof (Effective October 1, 2020): 2
26	26	(a) No health club contract shall have a term for a period longer than 3
27	27	twenty-four months. If a health club offers a contract of more than 4
28	28	twelve months' term, it shall offer a twelve-month contract. If a health 5
29	29	club sells a membership contract of more than twelve months' term, the 6
30	30	health club shall not collect payment, in cash or its equivalent of more 7
31	31	than fifty per cent of the entire consideration for the contract in advance 8
32	32	of rendering services. The remainder of the cost of the contract shall be 9
33	33	collected by the health club on a pro rata monthly basis during the term 10
34	34	of the health club contract. Each contract shall have the prices for all 11
35	35	contracts printed thereon. 12
36	36	(b) Written notice that a contract will automatically renew shall be 13
37	37	provided by the health club to the consumer at the time of entering into 14
38	38	the contract. No contract shall contain an automatic renewal clause 15 Raised Bill No. 139
39	39
40	40
41	41
42	42	LCO No. 1453 2 of 15
43	43
44	44	except for a renewal for a period not to exceed one month. If such 16
45	45	contract contains such a one-month automatic renewal clause, such 17
46	46	renewal shall become effective only upon payment of the renewal price 18
47	47	and such contract shall permit the buyer to cancel any further renewal 19
48	48	upon no more than one month's notice, except that for any such contract 20
49	49	where the term of the contract is forty-five days or longer, written notice 21
50	50	that the contract is soon subject to auto-renewal shall be provided by the 22
51	51	health club to the consumer not sooner than sixty days prior to the 23
52	52	expiration of term of the contract and not later than forty-five days prior 24
53	53	to the expiration of the term of the contract. The price of any such 25
54	54	renewal shall not increase or decrease unless the contract: (1) Discloses 26
55	55	the amount of such increase or decrease or the method of calculating 27
56	56	such increase or decrease in the price of such renewal, or (2) such 28
57	57	information is otherwise provided to the buyer, in writing, no less than 29
58	58	one month prior to such renewal, except that for any such contract 30
59	59	where the term of the contract is forty-five days or longer, such 31
60	60	information shall be provided by the health club to the consumer not 32
61	61	sooner than sixty days prior to the expiration of term of the contract and 33
62	62	not later than forty-five days prior to the expiration of the term of the 34
63	63	contract. Any renewal option for continued membership must be 35
64	64	accepted by the buyer in writing, by electronic mail or facsimile and 36
65	65	shall become effective only upon payment of the renewal price. 37
66	66	(c) Each health club shall post the prices and the three-day 38
67	67	cancellation provisions, the disability provisions and the twenty-five 39
68	68	mile moving provisions of all contracts in a conspicuous place where the 40
69	69	contract is entered into. 41
70	70	Sec. 2. Section 42-179 of the general statutes is repealed and the 42
71	71	following is substituted in lieu thereof (Effective October 1, 2020): 43
72	72	(a) As used in this chapter: (1) "Consumer" means the purchaser, 44
73	73	other than for purposes of resale, of a motor vehicle, a lessee of a motor 45
74	74	vehicle, any person to whom such motor vehicle is transferred during 46
75	75	the duration of an express warranty applicable to such motor vehicle, 47
76	76	and any person entitled by the terms of such warranty to enforce the 48 Raised Bill No. 139
77	77
78	78
79	79
80	80	LCO No. 1453 3 of 15
81	81
82	82	obligations of the warranty; and (2) "motor vehicle" means a passenger 49
83	83	motor vehicle, a passenger and commercial motor vehicle or a 50
84	84	motorcycle, as defined in section 14-1, which is sold or leased in this 51
85	85	state. 52
86	86	(b) If a new motor vehicle does not conform to all applicable express 53
87	87	warranties, and the consumer reports the nonconformity to the 54
88	88	manufacturer, its agent or its authorized dealer during the period of two 55
89	89	years following the date of original delivery of the motor vehicle to a 56
90	90	consumer or during the period of the first twenty-four thousand miles 57
91	91	of operation, whichever period ends first, the manufacturer, its agent or 58
92	92	its authorized dealer shall make such repairs as are necessary to 59
93	93	conform the vehicle to such express warranties, notwithstanding the 60
94	94	fact that such repairs are made after the expiration of the applicable 61
95	95	period. 62
96	96	(c) No consumer shall be required to notify the manufacturer of a 63
97	97	claim under this section and sections 42-181 to 42-184, inclusive, as 64
98	98	amended by this act, unless the manufacturer has clearly and 65
99	99	conspicuously disclosed to the consumer, in the warranty or owner's 66
100	100	manual, that written notification of the nonconformity is required 67
101	101	before the consumer may be eligible for a refund or replacement of the 68
102	102	vehicle. The manufacturer shall include with the warranty or owner's 69
103	103	manual the name and address to which the consumer shall send such 70
104	104	written notification. 71
105	105	(d) If the manufacturer or its agents or authorized dealers are unable 72
106	106	to conform the motor vehicle to any applicable express warranty by 73
107	107	repairing or correcting any defect or condition which substantially 74
108	108	impairs the use, safety or value of the motor vehicle to the consumer 75
109	109	after a reasonable number of attempts, the manufacturer shall replace 76
110	110	the motor vehicle with a new motor vehicle acceptable to the consumer, 77
111	111	or accept return of the vehicle from the consumer and refund to the 78
112	112	consumer, lessor and lienholder, if any, as their interests may appear, 79
113	113	the following: (1) The full contract price, including but not limited to, 80
114	114	charges for undercoating, dealer preparation and transportation and 81 Raised Bill No. 139
115	115
116	116
117	117
118	118	LCO No. 1453 4 of 15
119	119
120	120	installed options, (2) all collateral charges, including but not limited to, 82
121	121	sales tax, license and registration fees, and similar government charges, 83
122	122	(3) all finance charges incurred by the consumer after he first reports the 84
123	123	nonconformity to the manufacturer, agent or dealer and during any 85
124	124	subsequent period when the vehicle is out of service by reason of repair, 86
125	125	and (4) all incidental damages, [as defined in section 42a-2-715,] less a 87
126	126	reasonable allowance for the consumer's use of the vehicle, if applicable. 88
127	127	Incidental damages include, but are not limited to, compensation for 89
128	128	any commercially reasonable charges or expenses with respect to: (A) 90
129	129	Inspection, receipt, transportation, care or custody of the motor vehicle, 91
130	130	(B) covering, returning or disposition of the motor vehicle, (C) 92
131	131	reasonable efforts to minimize or avoid the consequences of financial 93
132	132	default related to the motor vehicle, and (D) effectuating other remedies 94
133	133	after a defect or condition that substantially impaired the motor vehicle 95
134	134	has been reported to a dealership or manufacturer. No authorized 96
135	135	dealer shall be held liable by the manufacturer for any refunds or vehicle 97
136	136	replacements in the absence of evidence indicating that dealership 98
137	137	repairs have been carried out in a manner inconsistent with the 99
138	138	manufacturers' instructions. Refunds or replacements shall be made to 100
139	139	the consumer, lessor and lienholder if any, as their interests may appear. 101
140	140	A reasonable allowance for use shall be that amount obtained by 102
141	141	multiplying the total contract price of the vehicle by a fraction having as 103
142	142	its denominator one hundred twenty thousand and having as its 104
143	143	numerator the number of miles that the vehicle traveled prior to the 105
144	144	manufacturer's acceptance of its return. It shall be an affirmative defense 106
145	145	to any claim under this section (1) that an alleged nonconformity does 107
146	146	not substantially impair such use, safety or value or (2) that a 108
147	147	nonconformity is the result of abuse, neglect or unauthorized 109
148	148	modifications or alterations of a motor vehicle by a consumer. 110
149	149	(e) It shall be presumed that a reasonable number of attempts have 111
150	150	been undertaken to conform a motor vehicle to the applicable express 112
151	151	warranties, if (1) the same nonconformity has been subject to repair four 113
152	152	or more times by the manufacturer or its agents or authorized dealers 114
153	153	during the period of two years following the date of original delivery of 115 Raised Bill No. 139
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155	155
156	156
157	157	LCO No. 1453 5 of 15
158	158
159	159	the motor vehicle to a consumer or during the period of the first twenty-116
160	160	four thousand miles of operation, whichever period ends first, but such 117
161	161	nonconformity continues to exist or (2) the vehicle is out of service by 118
162	162	reason of repair for a cumulative total of thirty or more calendar days 119
163	163	during the applicable period, determined pursuant to subdivision (1) of 120
164	164	this subsection. Such two-year period and such thirty-day period shall 121
165	165	be extended by any period of time during which repair services are not 122
166	166	available to the consumer because of a war, invasion, strike or fire, flood 123
167	167	or other natural disaster. No claim shall be made under this section 124
168	168	unless at least one attempt to repair a nonconformity has been made by 125
169	169	the manufacturer or its agent or an authorized dealer or unless such 126
170	170	manufacturer, its agent or an authorized dealer has refused to attempt 127
171	171	to repair such nonconformity. 128
172	172	(f) If a motor vehicle has a nonconformity which results in a condition 129
173	173	which is likely to cause death or serious bodily injury if the vehicle is 130
174	174	driven, it shall be presumed that a reasonable number of attempts have 131
175	175	been undertaken to conform such vehicle to the applicable express 132
176	176	warranties if the nonconformity has been subject to repair at least twice 133
177	177	by the manufacturer or its agents or authorized dealers within the 134
178	178	express warranty term or during the period of one year following the 135
179	179	date of the original delivery of the motor vehicle to a consumer, 136
180	180	whichever period ends first, but such nonconformity continues to exist. 137
181	181	The term of an express warranty and such one-year period shall be 138
182	182	extended by any period of time during which repair services are not 139
183	183	available to the consumer because of war, invasion, strike or fire, flood 140
184	184	or other natural disaster. 141
185	185	(g) (1) No motor vehicle which is returned to any person pursuant to 142
186	186	any provision of this chapter or in settlement of any dispute related to 143
187	187	any complaint made under the provisions of this chapter and which 144
188	188	requires replacement or refund shall be resold, transferred or leased in 145
189	189	the state without clear and conspicuous written disclosure of the fact 146
190	190	that such motor vehicle was so returned prior to resale or lease. Such 147
191	191	disclosure shall be affixed to the motor vehicle and shall be included in 148
192	192	any contract for sale or lease. The Commissioner of Motor Vehicles shall, 149 Raised Bill No. 139
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194	194
195	195
196	196	LCO No. 1453 6 of 15
197	197
198	198	by regulations adopted in accordance with the provisions of chapter 54, 150
199	199	prescribe the form and content of any such disclosure statement and 151
200	200	establish provisions by which the commissioner may remove such 152
201	201	written disclosure after such time as the commissioner may determine 153
202	202	that such motor vehicle is no longer defective. (2) [If] For any motor 154
203	203	vehicle subject to a complaint made under the provisions of this chapter, 155
204	204	if a manufacturer accepts the return of a motor vehicle or compensates 156
205	205	any person who accepts the return of a motor vehicle, [pursuant to 157
206	206	subdivision (1) of this subsection] whether the return is pursuant to an 158
207	207	arbitration award or settlement, such manufacturer shall stamp the 159
208	208	words ["MANUFACTURER BUYBACK "] "MANUFACTURER 160
209	209	BUYBACK-LEMON" clearly and conspicuously on the face of the 161
210	210	original title in letters at least one-quarter inch high and, within ten days 162
211	211	of receipt of the title, shall submit a copy of the stamped title to the 163
212	212	Department of Motor Vehicles. The Department of Motor Vehicles shall 164
213	213	maintain a listing of such buyback vehicles and in the case of any request 165
214	214	for a title for a buyback vehicle, shall cause the words 166
215	215	["MANUFACTURER BUYBACK "] "MANUFACTURER BUYBACK -167
216	216	LEMON" to appear clearly and conspicuously on the face of the new 168
217	217	title in letters which are at least one-quarter inch high. Any person who 169
218	218	applies for a title shall disclose to the department the fact that such 170
219	219	vehicle was returned as set forth in this subsection. (3) If a manufacturer 171
220	220	accepts the return of a motor vehicle from a consumer due to a 172
221	221	nonconformity or defect, in exchange for a refund or a replacement 173
222	222	vehicle, whether as a result of an administrative or judicial 174
223	223	determination, an arbitration proceeding or a voluntary settlement, the 175
224	224	manufacturer shall notify the Department of Motor Vehicles and shall 176
225	225	provide the department with all relevant information, including the 177
226	226	year, make, model, vehicle identification number and prior title number 178
227	227	of the vehicle. Such manufacturer shall stamp the words 179
228	228	"MANUFACTURER BUYBACK -LEMON" clearly and conspicuously 180
229	229	on the face of the original title in letters at least one-quarter-inch high, 181
230	230	and, within ten days of receipt of the title, shall submit a copy of the 182
231	231	stamped title to the Department of Motor Vehicles. The Commissioner 183
232	232	of Motor Vehicles shall adopt regulations in accordance with chapter 54 184 Raised Bill No. 139
233	233
234	234
235	235
236	236	LCO No. 1453 7 of 15
237	237
238	238	specifying the format and time period in which such information shall 185
239	239	be provided and the nature of any additional information which the 186
240	240	commissioner may require. (4) The provisions of this subsection shall 187
241	241	apply to motor vehicles originally returned in another state from a 188
242	242	consumer due to a nonconformity or defect in exchange for a refund or 189
243	243	replacement vehicle and which a lessor or transferor with actual 190
244	244	knowledge subsequently sells, transfers or leases in this state. If a 191
245	245	manufacturer fails to brand a title pursuant to this subsection within ten 192
246	246	days of assuming possession of the motor vehicle or compensating any 193
247	247	person who accepts the return, the Department of Consumer Protection 194
248	248	may impose on the manufacturer a fine not to exceed ten thousand 195
249	249	dollars. Any such fine collected shall be deposited into the new 196
250	250	automobile warranties account established pursuant to section 42-190, 197
251	251	as amended by this act. 198
252	252	(h) All express and implied warranties arising from the sale of a new 199
253	253	motor vehicle shall be subject to the provisions of part 3 of article 2 of 200
254	254	title 42a. 201
255	255	(i) Nothing in this section shall in any way limit the rights or remedies 202
256	256	which are otherwise available to a consumer under any other law. 203
257	257	(j) If a manufacturer has established an informal dispute settlement 204
258	258	procedure which is certified by the Attorney General as complying in 205
259	259	all respects with the provisions of Title 16 Code of Federal Regulations 206
260	260	Part 703, as in effect on October 1, 1982, and with the provisions of 207
261	261	subsection (b) of section 42-182, the provisions of subsection (d) of this 208
262	262	section concerning refunds or replacement shall not apply to any 209
263	263	consumer who has not first resorted to such procedure. 210
264	264	Sec. 3. Section 42-181 of the general statutes is repealed and the 211
265	265	following is substituted in lieu thereof (Effective October 1, 2020): 212
266	266	(a) The Department of Consumer Protection, shall provide an 213
267	267	independent arbitration procedure for the settlement of disputes 214
268	268	between consumers and manufacturers of motor vehicles which do not 215
269	269	conform to all applicable warranties under the terms of section 42-179, 216 Raised Bill No. 139
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271	271
272	272
273	273	LCO No. 1453 8 of 15
274	274
275	275	as amended by this act. The Commissioner of Consumer Protection shall 217
276	276	appoint as arbitrators individuals who shall not be employees or 218
277	277	independent contractors with any business involved in the 219
278	278	manufacture, distribution, sale or service of any motor vehicle. The 220
279	279	arbitrator shall be a member of an arbitration organization and shall 221
280	280	serve with compensation. The Department of Consumer Protection may 222
281	281	refer an arbitration dispute to the American Arbitration Association or 223
282	282	other arbitration organization in accordance with regulations adopted 224
283	283	in accordance with the provisions of chapter 54, provided such 225
284	284	organization and any arbitrators appointed by such organization to hear 226
285	285	cases shall not be affiliated with any motor vehicle manufacturer, 227
286	286	distributor, dealer or repairer. Such arbitration organizations shall 228
287	287	comply with the provisions of subsections (b) and (c) of this section. 229
288	288	(b) If any motor vehicle purchased at any time on or after October 1, 230
289	289	1984, or leased at any time on or after June 17, 1987, fails to conform to 231
290	290	such applicable warranties as defined in said section 42-179, as amended 232
291	291	by this act, a consumer may bring a grievance to an arbitrator if the 233
292	292	manufacturer of the vehicle has not established an informal dispute 234
293	293	settlement procedure which the Attorney General has certified as 235
294	294	complying in all respects with the requirements of said section 42-179, 236
295	295	as amended by this act. The consumer may initiate a request for 237
296	296	arbitration by calling a toll-free telephone number designated by the 238
297	297	commissioner or by requesting an arbitration hearing in writing. The 239
298	298	consumer shall file, on forms prescribed by the commissioner, any 240
299	299	information deemed relevant to the resolution of the dispute and shall 241
300	300	return the form accompanied by a filing fee of fifty dollars. Prior to 242
301	301	submitting the complaint to an arbitrator, the Department of Consumer 243
302	302	Protection shall conduct an initial review of the complaint. The 244
303	303	department shall determine whether the complaint should be accepted 245
304	304	or rejected for arbitration based on whether it alleges that the 246
305	305	manufacturer has failed to comply with section 42-179, as amended by 247
306	306	this act. The filing fee shall be refunded if the department determines 248
307	307	that a complaint does not allege a violation of any applicable warranty 249
308	308	under the requirements of said section 42-179, as amended by this act. 250 Raised Bill No. 139
309	309
310	310
311	311
312	312	LCO No. 1453 9 of 15
313	313
314	314	Upon acceptance of the complaint, the commissioner shall notify the 251
315	315	manufacturer of the filing of a request for arbitration and shall obtain 252
316	316	from the manufacturer, in writing on a form prescribed by the 253
317	317	commissioner, any information deemed relevant to the resolution of the 254
318	318	dispute. The manufacturer shall return the form within fifteen days of 255
319	319	receipt, together with a filing fee of two hundred fifty dollars. Upon 256
320	320	written agreement of the parties, signed after the consumer has initiated 257
321	321	a request for arbitration, the case may be presented to the arbitrator 258
322	322	solely based on the written documents submitted by such parties. A 259
323	323	lessee who brings a grievance to an arbitrator under this section shall, 260
324	324	upon filing the complaint form provided for in this section, provide the 261
325	325	lessor with notice by registered or certified mail, return receipt 262
326	326	requested, and the lessor may petition the arbitrator to be made a party 263
327	327	to the arbitration proceedings. Initial determinations to reject a 264
328	328	complaint for arbitration shall be submitted to an arbitrator for a final 265
329	329	decision upon receipt of a written request from the consumer for a 266
330	330	review of the initial eligibility determination and a filing fee of fifty 267
331	331	dollars. If a complaint is accepted for arbitration, an arbitrator may 268
332	332	determine that a complaint does not allege that the manufacturer has 269
333	333	failed to comply with section 42-179, as amended by this act at any time 270
334	334	before such arbitrator renders its decision on the merits of the dispute. 271
335	335	The fee accompanying the consumer's complaint form shall be refunded 272
336	336	to the consumer and the fee accompanying the form filed by the 273
337	337	manufacturer shall be refunded to the manufacturer if the arbitrator 274
338	338	determines that a complaint does not allege a violation of the provisions 275
339	339	of section 42-179, as amended by this act. 276
340	340	(c) The Department of Consumer Protection shall investigate, gather 277
341	341	and organize all information necessary for a fair and timely decision in 278
342	342	each dispute. The commissioner may issue subpoenas on behalf of any 279
343	343	arbitrator to compel the attendance of witnesses and the production of 280
344	344	documents, papers and records relevant to the dispute. The department 281
345	345	shall forward a copy of all written testimony, including all documentary 282
346	346	evidence, to an independent technical expert certified by the National 283
347	347	Institute of Automotive Service Excellence or having a degree or other 284 Raised Bill No. 139
348	348
349	349
350	350
351	351	LCO No. 1453 10 of 15
352	352
353	353	credentials from a nationally recognized organization or institution 285
354	354	attesting to automotive expertise, who shall review such material and 286
355	355	be available to advise and consult with the arbitrator. An arbitrator 287
356	356	shall, as expeditiously as possible, but not later than sixty days after the 288
357	357	time the consumer files the complaint form together with the filing fee, 289
358	358	render a fair decision based on the information gathered and disclose 290
359	359	his or her findings and the reasons therefor to the parties involved. The 291
360	360	failure of the arbitrator to render a decision within sixty days shall not 292
361	361	void any subsequent decision or otherwise limit the powers of the 293
362	362	arbitrator. The arbitrator shall base his or her determination of liability 294
363	363	solely on whether the manufacturer has failed to comply with section 295
364	364	42-179, as amended by this act. The arbitration decision shall be final 296
365	365	and binding as to the rights of the parties pursuant to section 42-179, as 297
366	366	amended by this act, subject only to judicial review as set forth in this 298
367	367	subsection. The decision shall provide appropriate remedies, including, 299
368	368	but not limited to, one or more of the following: 300
369	369	(1) Replacement of the vehicle with an identical or comparable new 301
370	370	vehicle acceptable to the consumer; 302
371	371	(2) Refund of the full contract price, plus collateral charges as 303
372	372	specified in subsection (d) of section 42-179, as amended by this act; 304
373	373	(3) Reimbursement for expenses and compensation for incidental 305
374	374	damages as specified in subsection (d) of section 42-179, as amended by 306
375	375	this act; 307
376	376	(4) Any other remedies available under the applicable warranties, 308
377	377	section 42-179, as amended by this act, this section and sections 42-182 309
378	378	to 42-184, inclusive, or the Magnuson-Moss Warranty-Federal Trade 310
379	379	Commission Improvement Act, 88 Stat. 2183 (1975), 15 USC 2301 et seq., 311
380	380	as in effect on October 1, 1982, other than repair of the vehicle. The 312
381	381	decision shall specify a date for performance and completion of all 313
382	382	awarded remedies. Notwithstanding any provision of the general 314
383	383	statutes or any regulation to the contrary, the Department of Consumer 315
384	384	Protection shall not amend, reverse, rescind or revoke any decision or 316 Raised Bill No. 139
385	385
386	386
387	387
388	388	LCO No. 1453 11 of 15
389	389
390	390	action of an arbitrator. The department shall contact the consumer, 317
391	391	within ten business days after the date for performance, to determine 318
392	392	whether performance has occurred. The manufacturer shall act in good 319
393	393	faith in abiding by any arbitration decision. In addition, either party to 320
394	394	the arbitration may make application to the superior court for the 321
395	395	judicial district in which one of the parties resides or, when the court is 322
396	396	not in session, any judge thereof for an order confirming, vacating, 323
397	397	modifying or correcting any award, in accordance with the provisions 324
398	398	of this section and sections 52-417, 52-418, 52-419 and 52-420. Upon filing 325
399	399	such application the moving party shall mail a copy of the application 326
400	400	to the Attorney General and, upon entry of any judgment or decree, 327
401	401	shall mail a copy of such judgment or decree to the Attorney General. A 328
402	402	review of such application shall be confined to the record of the 329
403	403	proceedings before the arbitrator. The court shall conduct a de novo 330
404	404	review of the questions of law raised in the application. In addition to 331
405	405	the grounds set forth in sections 52-418 and 52-419, the court shall 332
406	406	consider questions of fact raised in the application. In reviewing 333
407	407	questions of fact, the court shall uphold the award unless it determines 334
408	408	that the factual findings of the arbitrator are not supported by 335
409	409	substantial evidence in the record and that the substantial rights of the 336
410	410	moving party have been prejudiced. If the arbitrator fails to state 337
411	411	findings or reasons for the award, or the stated findings or reasons are 338
412	412	inadequate, the court shall search the record to determine whether a 339
413	413	basis exists to uphold the award. If it is determined by the court that the 340
414	414	manufacturer has acted without good cause in bringing an appeal of an 341
415	415	award, the court, in its discretion, may grant to the consumer his costs 342
416	416	and reasonable attorney's fees. If the manufacturer fails to perform all 343
417	417	awarded remedies by the date for performance specified by the 344
418	418	arbitrator, and the enforcement of the award has not been stayed 345
419	419	pursuant to subsection (c) of section 52-420, then each additional day the 346
420	420	manufacturer wilfully fails to comply shall be deemed a separate 347
421	421	violation for purposes of section 42-184. If the manufacturer fails to 348
422	422	perform regarding all awarded remedies by the date of performance 349
423	423	specified by the arbitrator, and enforcement of the award has not been 350
424	424	stayed pursuant to subsection (c) of section 52-240, the department may 351 Raised Bill No. 139
425	425
426	426
427	427
428	428	LCO No. 1453 12 of 15
429	429
430	430	impose a fine not to exceed one thousand dollars per day until the 352
431	431	manufacturer fully performs as specified by the award. Any such fines 353
432	432	collected shall be deposited into the new automobile warranties account 354
433	433	established pursuant to section 42-190, as amended by this act. 355
434	434	(d) The department shall maintain such records of each dispute as the 356
435	435	commissioner may require, including an index of disputes by brand 357
436	436	name and model. The department shall annually compile and maintain 358
437	437	statistics indicating the record of manufacturer compliance with 359
438	438	arbitration decisions and the number of refunds or replacements 360
439	439	awarded. A copy of the statistical summary shall be filed with the 361
440	440	Commissioner of Motor Vehicles and shall be considered a factor in 362
441	441	determining the issuance of any manufacturer license as required under 363
442	442	section 14-67a. The summary shall be a public record. 364
443	443	(e) If a manufacturer has not established an informal dispute 365
444	444	settlement procedure certified by the Attorney General as complying 366
445	445	with the requirements of said section 42-179, as amended by this act, 367
446	446	public notice of the availability of the department's automobile dispute 368
447	447	settlement procedure shall be prominently posted in the place of 369
448	448	business of each new car dealer licensed by the Department of Motor 370
449	449	Vehicles to engage in the sale of such manufacturer's new motor 371
450	450	vehicles. Display of such public notice shall be a condition of licensure 372
451	451	under sections 14-52 and 14-64. The Commissioner of Consumer 373
452	452	Protection shall determine the size, type face, form and wording of the 374
453	453	sign required by this section, which shall include the toll-free telephone 375
454	454	number and the address to which requests for the department's 376
455	455	arbitration services may be sent. 377
456	456	(f) Any consumer injured by the operation of any procedure which 378
457	457	does not conform with procedures established by a manufacturer 379
458	458	pursuant to subsection (b) of section 42-182 and the provisions of Title 380
459	459	16 Code of Federal Regulations Part 703, as in effect on October 1, 1982, 381
460	460	may appeal any decision rendered as the result of such a procedure by 382
461	461	requesting arbitration de novo of the dispute by an arbitrator. Filing 383
462	462	procedures and fees for appeals shall be the same as those required in 384 Raised Bill No. 139
463	463
464	464
465	465
466	466	LCO No. 1453 13 of 15
467	467
468	468	subsection (b) of this section. The findings of the manufacturer's 385
469	469	informal dispute settlement procedure may be admissible in evidence 386
470	470	at such arbitration and in any civil action subsequently arising out of 387
471	471	any warranty obligation or matter related to the dispute. Any consumer 388
472	472	so injured may, in addition, request the Attorney General to investigate 389
473	473	the manufacturer's procedure to determine whether its certification 390
474	474	shall be suspended or revoked after proper notice and hearing. The 391
475	475	Attorney General shall establish procedures for processing such 392
476	476	consumer complaints and maintain a record of the disposition of such 393
477	477	complaints, which record shall be included in the annual report 394
478	478	prepared in accordance with the provisions of subsection (a) of section 395
479	479	42-182. 396
480	480	(g) The Commissioner of Consumer Protection shall adopt 397
481	481	regulations, in accordance with the provisions of chapter 54, to carry out 398
482	482	the purposes of this section. Written copies of the regulations and 399
483	483	appropriate arbitration hearing procedures shall be provided to any 400
484	484	person upon request. 401
485	485	(h) After a consumer submits the forms and fee pursuant to 402
486	486	subsection (b) of this section and until such time that a decision or 403
487	487	settlement is rendered, the consumer shall notify any individual or 404
488	488	entity to whom he or she sells the motor vehicle that an action is pending 405
489	489	with the department pursuant to this section. Such notice shall be given 406
490	490	prior to the buyer's execution of the bill of sale, and shall include any 407
491	491	case number or reference number provided by the department to the 408
492	492	consumer. The consumer shall (1) notify the department not later than 409
493	493	five days after the buyer's execution of the bill of sale that the motor 410
494	494	vehicle has been sold, (2) provide the department with the name and 411
495	495	contact information of the buyer, and (3) attest that notice of the pending 412
496	496	action was given to the buyer prior to the buyer's execution of the bill of 413
497	497	sale. 414
498	498	Sec. 4. Section 42-190 of the general statutes is repealed and the 415
499	499	following is substituted in lieu thereof (Effective October 1, 2020): 416 Raised Bill No. 139
500	500
501	501
502	502
503	503	LCO No. 1453 14 of 15
504	504
505	505	(a) A new automobile warranties account surcharge is hereby 417
506	506	imposed on the sale or lease of each new motor vehicle, as defined in 418
507	507	section 42-179, as amended by this act, sold or leased in this state by any 419
508	508	person licensed to offer such vehicles for sale under section 14-52. Such 420
509	509	surcharge shall be in addition to any tax otherwise applicable to any 421
510	510	such sales transaction. 422
511	511	(b) The surcharge assessed pursuant to this section shall be at a rate 423
512	512	of three dollars per motor vehicle, as defined in section 42-179, as 424
513	513	amended by this act. Such surcharge shall be collected by each licensee 425
514	514	under section 14-52 engaged in the sale or lease of motor vehicles, as 426
515	515	defined in section 42-179, as amended by this act, in this state. Such 427
516	516	licensee shall pay the surcharges assessed during the prior calendar year 428
517	517	to the Department of Consumer Protection in an annual lump sum 429
518	518	payment on or before March thirty-first
519	519
520	520	of each year. Said department 430
521	521	may assess a late fee of two dollars per vehicle. 431
522	522	(c) Proceeds collected from surcharges assessed under this section 432
523	523	shall be deposited in the new automobile warranties account established 433
524	524	pursuant to subsection (d) of this section. 434
525	525	(d) There is established a separate, nonlapsing account, within the 435
526	526	General Fund, to be known as the "new automobile warranties account". 436
527	527	The account may contain any moneys required by law to be deposited 437
528	528	in the account. The moneys in said account shall be allocated to the 438
529	529	Department of Consumer Protection to carry out the purposes of this 439
530	530	chapter. 440
531	531	This act shall take effect as follows and shall amend the following
532	532	sections:
533	533
534	534	Section 1 October 1, 2020 21a-219
535	535	Sec. 2 October 1, 2020 42-179
536	536	Sec. 3 October 1, 2020 42-181
537	537	Sec. 4 October 1, 2020 42-190
538	538	Raised Bill No. 139
539	539
540	540
541	541
542	542	LCO No. 1453 15 of 15
543	543
544	544	Statement of Purpose:
545	545	To amend consumer protection statutes concerning health clubs and the
546	546	automobile lemon law.
547	547	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
548	548	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
549	549	underlined.]
550	550